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Art Harrigan played legal role that helped save Seattle Mariners, Seahawks

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The community thank you last week to former Sen. Slade Gorton for his instrumental role in saving major league baseball in Seattle was an appropriate reminder of his signal accomplishment for the community. But without detracting from Gorton's role, it may also be appropriate at some point to recognize the Seattle attorney whose legal victory set the stage for the search for a local owner.

That would seem particularly appropriate since the Seattle attorney, Arthur Harrigan Jr., had key legal roles in saving two of the Seattle professional sports franchises

Art Harrigan not only succeeded in forcing Mariners owner Jeff Smulyan to give business and community leaders four months to find a local buyer, but five years later he paved the way for a local sale of the Seattle Seahawks by preventing owner Ken Behring from moving the team to Los Angeles.

The legal confrontations with the owners of two of Seattle's professional sports teams came about because Harrigan's law firm, Calfo Harrigan Leyh & Eakes, long represented King County on an array of issues. And both owners came into conflict with the county because they sought to abandon the county-owned Kingdome and their leases there.

The venue for resolving the future of the Seattle Mariners franchise was what amounted to an arbitration hearing before Arthur Andersen, the national accounting firm agreed to by both sides to decide some key issues relating to the lease.

Since it wasn't a court process, which would have gotten large visibility for the battle between attorneys, Harrigan's maneuvering over the meaning of wording in Smulyan's contract regarding an attendance clause that was key to the final outcome was little noted, thus little remembered.

Harrigan's argued interpretation of the lease-requirement wording was accepted by the Andersen firm, so Smulyan was required to give an opportunity for a local buyer to be sought.

Of perhaps equal importance, Harrigan successfully argued that there should be a local value lower than the open-market value. The accounting firm agreed and set a "stay-in-Seattle" valuation at $100 million, rather than the national open-market value of $135 million that it had determined.

That created the opportunity for Gorton and others leading the effort to keep the team in Seattle to find a local buyer for $100 million, rather than $135 million, within four months.

No one knows if, at $135 million, Ninetendo's owner would have opted to pick up the cost of saving the Mariners for Seattle.

With respect to the effort to block the Seahawks' move, King County hired Harrigan's firm to keep Behring from fulfilling his widely publicized intent in the winter of 1996 to leave Seattle and move the team to Los Angeles.

Behring made the argument, after some tiles had fallen from the Kingdome roof, that he had concerns about seismic security of the facility as he announced that he was moving the team to Los Angeles.

Harrigan recalled the February meeting at the Woodmark Hotel at Carillon point at which he, King County Executive Gary Locke, Gary Locke, his assistant, and chief civil deputy Dick Holmquist with Behring's attorney, Ron Olson (who he noted was also Warren Buffet's attorney).

"Olson read from a yellow pad, explaining that the team, fearing earthquakes might impact the Kingdome, had to be moved to the comparative safety of Southern California and the Rose Bowl," Harrigan said. "Holmqust and I were trying not to laugh."

"We were poised to file a temporary restraining order the moment the trucks began rolling up to the team's offices in Kirkland," Harrigan said.

"So when Behring and Olson left the room, I made the call and the restraining order was filed," he added. "Had that not happened, we would have had to go to California and ask a California judge to send them back."

Behring had quickly, after the restraining order, filed suit in Kittitas County, so as part of the legal process, Harrigan also had to get the state Supreme Court to toss out that suit.

A few weeks later he and Behring attorneys met with NFL owners who were considering whether to allow the team to move, in the event Behring could escape the Kingdome lease, and made their presentations.

"I had brought Jon Magnusson and two other renowned structural engineers with West Coast seismic design expertise who explained that the idea that Southern California was safer than the Kingdome in case of earthquake was ludicrous," Harrigan said.

The legal maneuvering all came to an end when it was announced that Paul Allen had purchased the Seahawks.

While Harrigan, 72, is ranked as Seattle's top commercial trial lawyer by Chambers & Partners, which ranks the world's best lawyers and law firms, his legal activities have ranged well beyond the courtroom.

He worked with Craig McCaw in his early Eagle River Investments days, helped create the wireless company Nextel, which became a $7 billion public company, is a member of the boards of several public companies. His is chair, and was a principal fund raiser, for an interesting new company that will generate energy by storing electricity on trains.

Harrigan, a Harvard graduate with his law degree from Columbia, served as Senior Counsel to the U.S. Senate Select Committee on Intelligence, worked on an investigation of CIA intelligence activities related to Vietnam.

Most intriguingly, and perhaps as important as his later pro sports involvements in Seattle, he headed the committee's investigation of IRS intelligence operations, discovering that the agency was giving individuals' tax returns, under the claim of national security, to other intelligence agencies who were then misusing the information in sting operations.

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Two years on, Leiweke remains admirer of Seattle sports teams and their fans

Although it's been more than two years since Tod Leiweke was lured to Tampa to turn around that city's hockey fortunes the way he restored the luster of the Seattle Seahawks, he remains an ardent admirer of the Seattle sports scene and its fans. He also sings the praises of his current community-minded owner, Jeff Vinik, the way he touted the community focus of his Seattle boss, Paul Allen.

 

While now far distant in terms of miles, he remains an up-close booster of the Seahawks, whose fortunes he turned around, and the MLS Seattle Sounders, whose franchise he helped create, during the seven years he set down roots in the Seattle area.

 

Tod Leiweke
Tod Leiweke

"I love the idea of the Sounders playing before more than 60,000 fans," Leiweke enthused about the MLS team's recent contest. "But think about the fact that in the space of five days, the Seattle area turned out 170,000 fans for the Sounders, Seahawks and the (University of Washington) Huskies. That's unbelievable for any region."

 

But Leiweke, a self-described "eternal optimist," declined to involve himself in the controversy over the proposed new sports arena in Seattle's SoDo District south of downtown, other than to praise Seattle-raised investor Chris Hansen who wants to build the facility on land he now owns.

 

I asked him, in a recent telephone conversation, whether Hansen's dream of attracting both NHL and NBA franchises for Seattle to play in his planned but not-yet-approved arena, was realistic.

 

"It could work, yes," he replied. "But for the market to absorb two teams won't be easy."

 

Almost from the day in early 2010 that Boston financier Jeffrey Vinik bought the NHL Tampa Bay Lightning and the sports and entertainment facility since renamed the Tampa Bay Times Forum and moved his family to Tampa, he went Leiweke hunting. He was rebuffed at first in his efforts to have Leiweke forsake Seattle and come to Florida as CEO the team and the entertainment arena.

 

But by the time Leiweke announced in July of 2010 that he had accepted the position as CEO of Vinik's Tampa Bay Sports & Entertainment, as well as its subsidiaries the Lightning and what was then the St. Pete Times Forum, he acknowledged that an ownership stake in the parent company had closed the deal.

 

The Lightning needed to rebuild a brand battered by three years without a postseason appearance and two years of mismanagement by the previous owners.

 

Coming to Tampa and the Lightning was a return for Leiweke to his first love, hockey. He had been president of the Minnesota Wild, which he built into a major NHL success, and before that was with the Vancouver Canucks, prior to his hiring to turn around the Seahawks.

 

When Allen had coaxed Leiweke then 50, to Seattle to turn around the fortunes of a once-proud franchise, the team was believed losing money, but in fact, no one knew for sure because until Leiweke arrived to bring business acumen and marketing savvy, there apparently were no budgets. As Leiweke once confided, "when they ran out of funds they just asked Paul for more."

 

When Leiweke arrived in Seattle in 2003, the season-ticket total was 30,000 and his first game as CEO wasn't a sellout. But by the time the Seahawks reached their only Super Bowl two seasons later, every game was a sellout and season-ticket holders now top 60,000.

 

This year was to bring two big visibility opportunities for Tampa Bay Sports & Entertainment. But storm clouds threatened both. A major renovation of Tampa Bay Times Forum was carried out to make it ready to host the Republican National Convention, which was threatened with cancellation but in the end was only delayed by Hurricane Isaac.

 

But since the bulk of convention week took place, the facility, ranked the nation's fourth busiest, got good visibility as backdrop for the political gathering.

 

"The arena wasn't ready when the new ownership arrived and so we funded a $50 million renovation of a publicly owned building," Leiweke said. "The building looks almost new now."

 

The other big visibility opportunity was for the Lightning, plans to mark the franchise's 20th anniversary, described by one observer this way: :The 2012-13 season was supposed to be marketing gold, with the celebration of Tampa Bay's 20th to be the thread that tied together an expected on-resurgence."

 

"This has to be frustrating, even for a self-described 'eternal optimist,'" I suggested to Leiweke.

 

"I don't really feel that way," he replied. "If you look up Jeff Vinik, you see a guy who is committed world class and getting a right-sized collective bargaining agreement is part of us getting that done."

"I have always believed that no one follows a pessimist," he added. "Optimistic leadership is the key to leading."

 

"We have all the stuff for the 20th planned," Leiweke said. "If we have to compress it, we will. The best thing we can do for this franchise is put it on a trajectory for the next 20 years."

 

In talking about Vinik's role in community, Leiweke is overboard in his enthusiasm for a unique charitable program the owner put in place for the Lightning. Vinik and his  wife honored a Community Hero at each of the Lightning's 41 regular season games, and awarded a $50,000 check to a non-profit charity of his or her choice, a total of more than $2 million year.  

 

"Even though we're in a work stoppage, he announced he's going to make the same $50,000 donations," Leiweke said. "I've been lucky to work for two pretty good owners."

 

Our first telephone conversation took place just after Leiweke had returned from a 90-minute outing on his paddleboard off Anna Maria Island, where the Leiweke family has a retreat about 60 miles from Tampa.

 

"I love it out there," Leiweke said of his paddleboarding, a sport he fell in love with after moving to Tampa Bay. "But something big was just surfacing and I told myself 'time to get home.'" That's the kind of challenge that doesn't occur when he pursues his other entertainment of "beer-league" hockey. 

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